A VERY common theme amongst the email Q&A I get from new and developing traders is the frustration that comes from having a losing trade.
They typically want to know where they went wrong. Or what they should have done better.
Often though… there was NOTHING wrong.
Losses happen.
Seriously!
This is not a game of winning every trade.
Trades are not taken because of any belief in certainty; but rather because our assessment of the odds and potential payoff deems them to be worth the risk.
And success comes through managing both winners and losers, such that we profit over a series of trades.
Winners AND losers.
You will get both.
Sometimes they lose:
Sometimes they win:
Sometimes they lose. Sometimes they win.
What if instead of hoping every trade would win, you could be happy with a win rate of just 50%?
Seriously!
It’s enough!
You might get slightly more. Or slightly less. That’s fine. It’s still enough.
Just ensure you work on keeping the average win larger than the average loss.
Happy trading,
Lance Beggs